Swiggy & Zomato May Unite Against Global Players in Food Tech

Zomato the Juggernaut in the Food and restaurant Aggregator business is now in talks with its arch rival in Food delivery sector ,(you guessed it right its)Swiggy .Both the Companies are said to having a secret low profile talks for a potential Stock merger along side a 4:1 share swap ratio.

Zomato Founded by Deepinder Goyal ,which is currently valued at Rs. 6386.64 Cris operating at a Rs.389 Cr in FY17. It recently turned profitable and now is facilitating 3 million orders on monthly basis.Swiggy on the other hand is operating at Rs 23.59 Cr revenue with the valuation of 2583.20 Cr.It seems the shark has been doing a better job at Food Order game with a whopping 4 million orders a month, even after startup in 2014 way behind Zomato which started in 2008.

As whispers from the street says While Zomato has proposed a stock-based merger, Naspers backed Swiggy is keen to acquire and operate the food delivery business of the Gurgaon-based rival.If the merger happens well Zomato will become the undisputed Unicorn in Food Ordering Business leaving option to compete with only new comers like Areo by Google ,San Francisco based UberEATS obviously by Uber and Germany Based Foodpanda(which is by the way big to compete to) only to rival with.

Hope this Merger deal doesn’t fall apart like the Flipkart-snapdeal one where the two parties could not reach a business alignment or the OYO’s bid to acquire smaller rival Zo Rooms which made a huge buzz but turned out to a hoax in the end.

As of know Zomato Officials are denying the news stating “We would not like to comment on baseless speculations such as this .We have a razor-sharp focus in delivering a superior customer experience as we continue to grow as India’s largest food ordering and delivery company.” On positive note if this Merger ends up well it will make Zomato an unbeatable giant(which is every startup’s dream).

Will this merger end well ? if so how will effect the Food startup sector ? Is merger the New acquisition ?

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